Managing Your Household Bills

Managing household bills is a crucial aspect of maintaining financial stability and security. Beyond mortgage repayments, numerous expenses demand attention to ensure a balanced budget.

Here is a breakdown of essential bills and strategies to optimise your finances:

Council Tax

Council tax is a mandatory payment for property owners or renters in the UK. It varies based on property size, location, and other factors. You must make this payment from the day you move in.

You can apply for a discount on your council tax bill. Those not counted (disregarded) are:

• on certain apprentice schemes
• 18 or 19 years old and in full-time education
• a full-time student at college or university
• a student nurse
• severely mentally impaired

See more on the official Gov website to determine your band and associated costs.

Learn more about Council Tax.

Home Insurance

Building insurance

Lenders require building insurance when you take out a mortgage. No legal obligation exists for outright homeowners to have this insurance but it is highly recommended. Without building insurance, homeowners would be responsible to major repairs including fire damage and flooding.

Contents insurance

There is no legal requirement to have contents insurance. Experts highly recommend this insurance because it protects homeowners' belongings in case of loss or damage. The insurance will cover the cost of replacing in the event of fire and theft.

Cutting energy bills with efficiency

Saving money on your utility bills is a practical and effective way to cut household expenses. Taking control of your energy usage can lead to significant savings over time. There are many small changes that could save you money each month. Switching off unused appliances and using energy efficient light can reduce consumption without sacrificing comfort, reducing your environmental impact.

Lighting

• Switch to LED bulbs. They use up to 80% less energy and last longer!
• Turn off lights when not in use. Motion sensor lights are an options for less used areas.

Electricity

Identify energy intense applications like washing machines and dryers. Using these during off-peak hours and reduce your bills. New homes often incorporate energy efficient smart technology, including smart thermostats. These can help monitor your energy usage.

Take meter readings upon moving into a new property to avoid overcharges.

Water

New builds include water saving energy-efficient features. Such as dual-flush toilets and low-flow shower heads. The developers install water meters. This allows homeowners to pay for what they actually use.

Ways you can reduce your water bill include:

• Limiting your time in the shower.
• Fix leaks - The NHBC warranty can cover leaks but depends on the cause and specific terms of the warranty. Leaks caused by construction defects due to materials and workmanship are covered during the first two years. After that, the warranty only covers leaks from certain parts of the building. Mould caused by poor ventilation is not covered.
• Use appliances like dishwashers and washing machines during off-peak times.
• Install a water butt to collect rainwater. Perfect for watering the garden and outdoor cleaning.

Connectivity

Broadband

Fibre-optic is common in new builds. Some new build estates tie themselves to exclusive providers for a year or two. Check with your developer's agreement when enquiring. Speeds can vary by developer and location.

Explore competitive rates for internet services online. Many providers offer new customer incentives. Cash back, gift cards and free installation can all be available. Bundle services may offer further discount if you are looking for both broadband and mobile solutions.

Watch out for automatic price hikes after the first year. Set a reminder to renegotiate or switch.

Mobile phones

Signal can be patchy on new build estates. Check the coverage maps before committing with a provider.

If you already own the handset, SIM-only plans are a cheaper monthly option. Family or multi-device plan are great for providing savings. If you regularly travel abroad, check your roaming charges in your contact. Some plans charge heavily outside the United Kingdom.

If you watch live TV, a TV license is required by law. As of July 2025, the fee is £174.50 per year.

Service chargers / Estate fees

Service charges are increasingly popular with new build estates. The fees cover the cost of maintenance for communal areas, landscaping and roads. Although these fees represent another expense, you must pay them. The management company reviews the fees annually.

Direct debits

Many set up direct debits to manage their household bills. Essential payments are made on time, avoiding missed payments and late fees. This could also damage your credit score.

Making your house, a home

New build homes come as a blank canvas. Set money aside early and budget for curtains, lighting and furniture means less financial stress. Prioritise the essential items first.

Take advantage of seasonal sales, discount codes and cash back offers. Charity shops, Facebook market place and auction sites all offer great quality furniture for a lower cost. Up cycling with help from friends and family can help you save money. Best to avoid premium brands unless necessary, and opt for high street or online retailers.

Other considerations

To effectively manage household bills and boost savings, consider these tips:

• Use price comparison sites to find the best deals on financial products.
• Periodically reassess your bills to ensure competitiveness and take advantage of new customer offers.
• Exchange money-saving tips with friends and family to collectively benefit.
• Secure discounts by paying bills via direct debit and opting for electronic statements.
• Explore upfront payment options, especially for insurance premiums, to potentially save money.
• Verify your council tax band for accuracy and consider switching to monthly payments if feasible.
• Contact service providers to enquire about better tariffs or discounts.
• Take your time to evaluate offers and make informed decisions.
• Track all income and expenses to identify areas for savings and set financial goals.